Hello World Changer

To answer the second part of your question.

Assuming your friend lived in the house first as her PPOR then she can rent it out for up to 6 years without having to pay CGT when she sells, irrespective to whom she sells. This is assuming she has claimed no other property as her PPOR during that time. Seeing as she has been OS I…[Read more]

You need to read the fine print .

You get 55 days interest free if you pay for things with your CC.

However, as Redwing said, if you take out cash on it interest starts from day 1. NOT a good idea.

Banks (or CC companies) get a commission on every item you charge on your CC from the people that offered you this method of payment. That’s how…[Read more]

Hello DraconisV

Maybe what the authur of Wizard Wealth was actually suggesting was that you use your CC to pay all expenses and then pay it off just before the end of your interest free period.

The idea being that you get to keep all your income (salary, rental income etc.) in an offset account longer and so save yourself interest on your…[Read more]

Hello Casper

I don’t think that it’s possible to answer the question this way.

You have to get the numbers and compare. For example what will it cost to do the renovations you mentioned and what is the expected (realistic) sale price after reno.

What is the price of demolishing and then subdividing the block and what will you then get for each…[Read more]

Hello balkan warrior

The thing about staying with your parents while saying that the new property is your PPOR is a bit tricky. The ATO has “tests” to see if in fact a place is your PPOR.

Things like :-

whether you have moved your personal belongings into the home
the address to which your mail is delivered
your address on the electoral…[Read more]

Hello Cata and Tony

I’m really confused here.

I live overseas (20 years now) and own IP’s in Australia. My accountant tells me I am liable for CGT if I sell a property. I mentioned this on another thread here and someone said that this was not necessarily so.

When I asked how can you avoid paying CGT they said that as a non resident you can…[Read more]

Hello Tony

Thank you for that. I will call my accountant again as this may be the way to go.

Maybe there is even some way (unit trust as partner to SMSF?) that as your equity grows the SMSF can buy “you” out slowly to increase the tax free and CGT free portion.

Thanks again [smiling]
Elka

Hello Derek

Surely that means:-

a. It’s legal to have a cooling off period put in the contract.

b. As there is no cooling off period defined in law, if you don’t put it in you can’t just change your mind.

Or have I misunderstood something?

Cheers [smiling]
Elka

Hello Tony

Can you expand on what your accountant suggested for you re investment s within a SMSF please.

The problem is that any investment within a SMSF must be fully paid for. i.e no mortgage or leveraging if it’s shares.

I asked my accountant if he thought it would be a good idea to increase the mortgage of an IP property I own in my name…[Read more]

Hello Gross

Thank you for adding spacing and some punctuation to your post.

The last one was great to read.

I have been trying to follow your deal as it’s facinating but going cross eyed from trying to read it let alone understanding it.

Much appreciated. [smiling]
Elka

Hello Queengucci

The simple answer is no.

If you want to learn about CGT then the ATO has comprehensive information on this subject on their site plus simple examples .

http://www.ato.gov.au/

Happy reading [grad]
Elka

Hello Nordicskier

Can you please explain your formula.

Purchase price (in thousands) X 1.5 = weekly rent needed to 100% finance property.

At what interest rate?
How did you derive this formula.

Thanks [smiling]
Elka

Hello Foundation

“House prices have averaged around 8.5% pa since 1970. No more, no less (time and value). I can explain “Why is this so?” if anybody cares to listen. ”

I certainly care to listen.

Your knowledge and interest in this area is amazing. Please share some of it with us. [grad]

Wanting to learn.

Elka

It’s scary to think that just by having your name and bank number someone could actually empty your account. ???

Greed is a powerful emotion and puts some peoples brains into neutral.

I have a girl friend whose husband was stupid enough to believe that someone was going to sell him gold bullion for half price. He and an equally clever friend got…[Read more]

Hello DraconisV

Here is a link to information on the FHOG. From there you can also link to a site with information specific to the state you live in.

http://www.firsthome.gov.au/

I had a quick look but can’t find the $3000 you mentioned Peter but that could be my fault and also may be state dependent. I only looked quickly at NSW.

A big…[Read more]

Hello Cata

I’ve had something similar emailed to me some time ago and I deleted it as quickly as I could. I have heard of this scam but have never actually understood how it works. I mean how do they expect to fleece you?

Just curious
Elka

Hello sbrody

This might sound stupid but have you actually tried talking to your neighbour about the problem. If so, what was his reaction.

Do you know what his renovations involved? If they were all internal I’m not sure he would need any coucil approval but the best way to find out is to ring the council and ask. If he did require approval,…[Read more]

Hello Ninie

Here is a link to a thread with about the same question you are asking.

https://www.propertyinvesting.com/forum/topic/24571.html

Hope this helps [smiling]
Elka

Hello Len

Why don’t you ring up the ATO and ask. Who better to answer you with a great degree of certainty.

Cheers [smiling]
Elka

Hello LifeX

How would that work if interest rates went up before the year was up.?

Cheers [smiling]
Elka